The Civil Aviation Authority of Vietnam has just proposed the Ministry of Transport to stop considering giving an in-principle approval for the establishment of IPP Air Cargo of Johnathan Hanh Nguyen.
|The establishment of IPP Air Cargo of billionaire Johnathan Hanh Nguyen may be delayed until the end of the pandemic |
This proposal has been part of a document the Civil Aviation Authority of Vietnam (CAAV) has recently submitted to the Ministry of Transport (MoT).
The CAAV explained that this is one of the solutions to mitigate the market supply and demand imbalance.
The MoT has been given authority by the prime minister in Decree No.89/2019/ND-CP to consider and grant air transport business licences. However, based on the direction of the prime minister, applications to establish new airlines should only be entertained after the aviation market recovers, which is only expected after next year.This is why the CAAV proposed not to approve the establishment of IPP Air Cargo at this time.
The CAAV will survey market movements, impacts of the pandemic, and report to the MoT on the feasibility of establishing new airlines after 2022, which will then submit a final proposal to the prime minister.
IPPG is a retail group chaired by Johnathan Hanh Nguyen, making up 70 per cent of international high-end fashion distribution in the country, with 17 subsidiaries and 18 associated companies. IPPG is also a major shareholder of Southern Airport Services JSC (SASCO) and Cam Ranh International Terminal JSC (CRTC).
IPP Air Cargo registered as a business on March 10, 2021. Johnathan Hanh Nguyen is chairman while his wife Le Hong Thuy Tien is general director and legal representative. The charter capital of IPP Air Cargo is VND2.4 trillion (over $100 million), 30 per cent of which is equity and the remainder is mobilised capital.
IPP Air Cargo was planning to operate five cargo aircraft in the first year and raise the number to seven and 10 in the second and third years. The airline expected to turn a profit since the fourth year of operation.
Last year, Kite Air's application for establishment was refused and Vietstar Airlines was also refused the overloaded Tan Son Nhat International Airport as its base of operation.